Chicago Bankruptcy a Better Option Than Debt Payment Services and Credit Counseling
A recent advice column on creditcards.com tells readers it would be better to slowly pay off creditors than to file bankruptcy if you have a low credit score.
But Chicago Bankruptcy Lawyers disagree with this assessment and believe that continuing to drown in credit card, medical bill or other debt and struggling to keep your head above water is poor advice. For most, their credit has already been temporarily ruined. And for many, they will only prolong the misery before inevitably seeking the solace available through bankruptcy protection in Illinois.
Many Chicagoans are trying their best to stay afloat on their mortgages, but have fallen behind because of tough economic times. Consulting with a team of experienced bankruptcy lawyers in Chicago is the first step in assessing what will be your best plan financially.
According to the advice column, the question is from a woman who has a low credit score and wants to clean it up. She is wondering whether to file for bankruptcy to wipe it clean or continue paying off three collectors at a time in order to increase her credit score.
The column's writer, a financial adviser, tells the woman that bankruptcy won't improve the woman's credit score, but it won't make it drop, either. The writer tells the reader that continuing to pay creditors will eventually, over time, help her credit score.
But so will bankruptcy. And much faster. A 700+ credit score several years after bankruptcy is possible for many people.
For one, the column should be met with skepticism because it is written on creditcards.com, a website designed to help people find credit cards. One benefit of bankruptcy to consumers is it immediately stops creditors from coming after consumers, so credit card companies wouldn't want consumers to know that information. And considering there was nearly $792 billion in credit card debt in 2010, according to economywatch.com, credit card companies want to keep people out of bankruptcy court.
But the notions that a person's credit score doesn't improve after bankruptcy or that they won't be able to obtain credit after filing for bankruptcy are false. Our firm has seen many people receive credit card offers with little or no hassle following bankruptcy. Some people can even get loans for a new house within a short period of time.
Consumers facing piles of debt know how disruptive creditors and collection agencies can be. They call all day, send e-mails, bother family members and co-workers and can make life difficult. A person may be able to make payments for a while, but what happens when the car needs a big repair or someone in the family goes to the hospital? Then you're back in the same position you were in before you started making payments.
Credit counseling and debt payment services try to tell consumers they are great alternatives, but often using those services still ruins a person's credit and they have to pay for those services on top of it all. Bankruptcy, meanwhile, can create a clean break from creditors and allow people to take control of their finances and make their financial future a brighter one.
If you need to speak to a Chicago bankruptcy attorney call the DebtStoppers Bankruptcy Law Firm at 800-440-7235 today for a free debt analysis.